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PurposeThe purpose of this study is to examine the impact of ownership structure such as family, government, institutional, foreign and public on dividend payouts as a representative of dividend policy of nonfinancial firms in Bangladesh.Design/methodology/approachThis study employs a dynamic panel data model, namely, differenced generalized method of moments (GMM), which follows a two-step process. The study uses annual data of a sample of 159 nonfinancial firms of Dhaka Stock Exchange for the period 2008–2017, which constitutes a panel data of 1,590 firm-year observations.FindingsThis study’s findings reveal that family and public ownerships have a significant and positive effect on dividend payouts, while government and institutional ownerships have a significant but negative effect. This study additionally incorporates some very important controlled variables and finds that except for size, all the selected controlled variables, i.e. lagged-one of dividend payout, returns on assets, debts to assets, price-earnings (PE) ratio, age and financial crisis have a significant effect on the dividend payouts. However, the findings support several dividend-related theories or hypotheses, i.e. agency cost theory, dividend stability theory and reputation hypothesis.Research limitations/implicationsThis study could consider some other aspects of corporate governance, as well as other emerging markets and financial institutions to perceive whether the results differ. Also, investigation could be carried out on conventional and Islamic firms individually to observe if the findings are different. However, the researchers are suggested to incorporate these issues in their future studies.Practical implicationsThis study offers an important insight into the relationship dynamics between dividend payouts and ownership structure in the context of an emerging market like Bangladesh. Moreover, it enhances the understanding of the ties of dividend payouts with the firm-specific factors as well as the financial crisis. The findings of the present study have also important implications for managers, policymakers and researchers, who are in quest of directions on the dividend policy of publicly listed nonfinancial firms.Originality/valueMost of the previous studies consider one or two types of ownership to examine the impacts on dividend payouts, while this study uses five types of ownership accompanied by a different data set. Moreover, to the authors’ knowledge, no study in Bangladesh has yet addressed this issue in such a comprehensive manner as theirs.

The net contribution of the decomposed measures of foreign direct investment (FDIs), e.g., the inward and outward flows of FDIs, to domestic investment is still inconclusive in the case of underdeveloped and developing countries. The current literature bears testimony to this fact. Hence, this research examines the impact of inward and outward foreign direct investments (FDIs) on the domestic investment in Bangladesh. This study considers annual time series data from 1976 to 2019 and estimates this data property under the augmented ARDL approach to cointegration. In addition, this research employs the dynamic ARDL simulation technique in order to forecast the counterfactual shock of the regressors and their effects on the dependent variable. The results from the augmented ARDL method suggest that the inward FDI has a positive impact on domestic investment, while the outward FDI is inconsequential in both the long run and the short run. Besides, our estimated findings also show the economic growth’s long-run and short-run favorable effects on domestic investment. At the same time, there is no significant impact of real interest rates and institutional quality on domestic investment in the long run or the short run in Bangladesh. In addition, the counterfactual shocks (10% positive and negative) to inward FDI positively impact domestic investment, indicating the crowding-in effect of the inward FDI on the domestic investment in Bangladesh. As the inward FDI flow is a significant determinant for sustained domestic investment in Bangladesh, the policy strategy must fuel the local firms by utilizing cross-border investment.

This study examines the impact of some selected macroeconomic variables on the performance of the non-life insurance companies of Bangladesh. Here, we consider 32 such companies that are operating in the country. These companies are observed over the period of 7 years (2009–2015) giving rise to 224 panel observations. In our study, we use two performance measures, like return on asset (ROA) and return on equity (ROE) as dependent variables. The explanatory variables are categorized as macroeconomic factors and firm-specific factors. Former includes variable such as inflation rate, GDP growth rate, interest rate, and exchange rate. To measure the firm-specific factors, we use eight proxy variables such as age, size, loss ratio, solvency margin, assets tangibility, liquidity ratio, debt ratio, and management competence index as explanatory variables. The research employs panel data regression methodology to examine the effects of macroeconomic variables on the performance of the aforementioned companies. The regression results of our study suggest that except interest rate, none of the macroeconomic variables has statistically significant influence on the performance of non-life insurance companies. These results, indeed, gainsay with economic theories. On the other hand, the firms’ specific factors; e.g., age, sizes, loss ratio, solvency margin, tangibility of assets, and management competence index have statistically significant impact on the performance of the non-life insurance sector of Bangladesh. Thus, the interest rate along with firm-specific factors can be identified as determinants of the performance of the Bangladeshi non-life insurance companies. This analysis obviously provides some noteworthy new information to different stakeholders of the Bangladesh non-life insurance sector. In particular, the findings of the study are expected to be useful to both domestic and foreign investors to make more rational decisions regarding selection of insurance companies’ stocks for their portfolios at Dhaka stock exchange. Public policy authorities may also use the same results to formulate sound policies to ensure economic growth and stability of the nation.

The notion that economic reform can reduce corruption remains prevalent in the policy agenda of international financial institutions, especially of the World Bank. Economic reforms have, therefore, been carried out throughout various parts of the world to improve the performance of the economies. Using data from 94 low†and middle†income nations for the period 1996–2015, this study employs static and dynamic panel analysis to examine whether economic reform undertaken in accordance with the World Bank's reform programs negatively affects corruption. Our findings suggest that enhancing government effectiveness (i.e. independence of civil service from political pressure, provision of quality public services, effective policy formulation and the government's commitment to such policies) and improving public rights and civil liberties could be some of the most promising policies in terms of fighting corruption. The role of economic development and growth in real per capita income is also found to be significant in some of the specifications. However, the assertion that economic reform can reduce corruption is rejected in all the specifications. We rather find evidence that economic reforms negatively affect the ability of democracy to fight corruption, although on a slim margin. The central theme of the implications of our findings is that in combating corruption, social, institutional and legal means are far more important than economic means. The finding thus is compatible with the World Bank's effort in the later years to introduce governance and democracy as effective tool against corruption.

The principal aim of the study is to find out a way to effectively manage the agricultural risks like price volatility, weather risks, and fund shortage. To hedge price volatility, farmers sometimes make contracts with agro-traders but fail to protect themselves effectively due to not having the legal framework for such contracts. The study extensively reviews existing literature and find evidence that the majority studies either deal with price volatility or weather risks. If we could address these risks through a single model, it would be more useful to both the farmers and traders. Intrinsically, the authors endeavor in this regard, and the key contribution of this study lies in it. Initially, we conduct a small survey aspiring to identify the shortcomings of existing contracts. Later, we propose a model encompassing forward and insurance contracts together where the forward contract will be used to hedge price volatility and insurance contract will be used to protect weather risks.

Purpose Sustainable food security at the household level is one of the emerging issues for all nations. Several factors such as social, economic, political, demographic, natural and livelihood strategies cause vulnerability in the status of household food security. This study aims to examine the vulnerability of the factors of household food accessibility and its linkage with the climatic changes in Malaysia. Design/methodology/approach The study is based on primary data collected in the months of July-October, 2012, through a questionnaire survey on 460 low-income households from the East Coast Economic Region (ECER) in Malaysia. The samples were selected from E-Kasih poor household database, based on the cluster random sampling technique. The questionnaire uses a five-point Likert scale, and the data were analyzed using descriptive statistics and ANOVA F statistics for chi-square two-sample test. Findings The study finds that the vulnerability of the factors of household food accessibility has increased statistically and significantly over the past five years in Malaysia, whereas the contributions of climatic factors are low on these changes. This study suggests that the food security programs in Malaysia need to be integrated with the climatic change adaptation programs to ensure more effective and sustainable household food security in the future. Originality/value This study is an original work based on primary data that empirically measures the vulnerability of the factors of household food accessibility, one of the important dimensions of household food security, and its linkage with climatic changes.

Economic and social policies of Brunei - an empirical analysis, Shamim A. Siddiqui, Abdul A. Hashim, Abu N.M. Wahid policy reform in Indonesia - a political economy perspective, Abu N.M. Wahid, Mohamad Ikhsan Malaysia in transition, Anis Chowdbury economic development in the Philippines - a frustrated take-off?, Mahabub Hossain a brief assessment of Singapore's economic miracle, Habibullah Khan an enduring lesson from Thailand's economic performance, A.T.M. Nural Amin.

Sustainable food security at the household level is a national concern in many countries. The reasons for household food insecurity include, among others, social, economic, political, and personal factors, as well as climatic changes and its outcomes. This research aims to determine the linkage of the factors of climatic changes, non-climatic factors and household resiliencies with the level of household food security among the poor and low income households in Malaysia. The present study is based on primary data that were collected in July and October 2012 through a questionnaire survey of 460 poor and low-income households from the Pahang, Kelantan, and Terengganu States of Malaysia. The sample was selected from E-Kasih poor household database based on a cluster random sampling technique. Initially the study measures household food security according to the United States Agency for International Development – Household Food Insecurity Access (USAIDHFIA) model, and has run ordinal regressions under the logit and probit models. This study finds that household food insecurity is not only linked with social and economic factors, but also significantly linked with the climatic factors. Therefore, food security programmes must be integrated with the programmes for climatic change adaptation.

Purpose Sustainable food security at the household level is one of the emerging issues for all nations. It is expected that the patterns of household resilience factors and adaptation practices have a strong linkage with household food security. The purpose of this paper is to seek an effective technique of adaptation for food security and the required types of support for adaptation to food insecurity among the poor and low-income households in Malaysia. Design/methodology/approach This study was based on primary data that were collected in July-October 2012 through a questionnaire survey among 460 poor and low-income households from the Pahang, Kelantan, and Terengganu states of Malaysia. The samples were selected from E-Kasih poor household database based on a two-stage cluster random sampling technique. The study considered household food security as household food availability and food accessibility, and ran ordinal regressions to find out the linkages of household food security with household resilience factors, adaptation practices, and expected support for adaptation to food security. Findings The study concludes that several resilience factors and adaptation practices were statistically significant to household food security, and several external supports were statistically and significantly needed to ensure household food security. Therefore, to ensure sustainable household food security in Malaysia, the food security programs need to be integrated with sustainable development goals (SDGs) and climatic changes adaptation programs, and the involvement of relevant stakeholders are crucial. Originality/value This study is a pioneer work based on primary data that empirically measured the linkages of household food security with household resilience factors, adaptation practices, and expected support for adaptation to food security in Malaysia. This study also discussed some issues related to the climate change linkage, which would help future climate change research. The findings of the study will be beneficial for all the stakeholders, including policy makers related to the food security and climate change adaptation.

Purpose – The purpose of this paper is to examine the direct and indirect impacts of climatic changes as well as the effects of non-climatic factors on household food security in Malaysia. Design/methodology/approach – The study is based on primary data collected in the months of July – October, 2012 through a questionnaire survey on 460 low-income households from East Coast Economic Region (ECER) of the country. The samples were selected from E-Kasih poor household database, based on cluster random sampling technique. The statistical estimation was done through two-stage formative path measurement model by using non-parametric bootstrap procedure under Smart PLS. Findings – This study finds that household food insecurity ECER – Malaysia is not only related to social and economic factors, but also statistically significantly linked to the direct and indirect impacts of climatic factors. The policy implications of the study suggest that design of food security programs must be integrated with climatic change adaptation programs. Originality/value – The government and other relevant agencies should jointly develop appropriate policies for poverty alleviation, household-level food security, and adaptation with climatic changes in Malaysia.

The microcredit (MC) program of Bangladesh has been a well-known success story for generation of self-employment, and poverty alleviation. Variants of this MC model are being implemented in more than 60 different countries of the world. It has become almost a universal antidote for poverty especially from 2006 when Professor Muhammad Yunus- the founder of the Grameen Bank (GB) and the bank itself shared the Nobel peace prize. Although the GB is the pioneer of MC program in Bangladesh, there are many other non-governmental organizations (NGO)s that offer the same program in Bangladesh in different forms and names. The providers of MCs claim that the overwhelming majority of the borrowers are using the loan funds profitably for productive purposes, repaying the loans and interest regularly, and thus improving their socio-economic conditions steadily. The findings of the present study are somewhat contrary and disturbing to the claim of the MC programs. This study finds that a bulk of the MC is borrowed for non productive purposes. About one quarter of the borrowers use the credit exclusively for consumption and debt repayment purposes. Nearly half of them use the credits entirely for investment purposes. For all, the return on investment is very meager. About two-third of the borrowers, on average have an impressive 83% net return on investment available for payment of interest and dividend in addition to the principal. But in case of as high as one third of them, average return on investment is not enough even to cover the most minimum or tolerance level of wages for family labors, let alone paying any interest and making any profit after keeping aside the principal.

Purpose The purpose of this study is to analyze the profitability performance of Islamic banks (IBs) of the Gulf Cooperation Council (GCC) region during 2008 global financial crisis. Design/methodology/approach Bank-specific data are taken from the Bank Scope database and macroeconomic data are collected from International Financial Statistics. Using a panel data series of 30 banks for the period of 2005 to 2011, the study shows the evidence of structural break for the crisis year as well as the factors that impact the profitability of IBs. Findings The performance of GCC IBs was significantly influenced during the crisis period by capital adequacy, credit risk, financial risk, operational efficiency, liquidity, bank size, gross domestic product, growth rate of money supply, bank sector development and inflation rate. The study also finds that there is a structural change before and after the global financial crisis. Originality/value This is an original study that shows that the Sharīʿah-compliant banks have performed better during the crisis and are not affected based on their internal performance records; rather, they have been affected indirectly from the macro shock owing to the overall economic crisis.

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

This research, conducted to analyze the level of food security among poor and low-income households in the east coast economic region of Malaysia, uses primary data of 460 families from the E-Kasih poor households database, based on a cluster random sampling technique. Food security levels were measured using the United States Agency for International Development Household Food Insecurity Access model. Findings indicate that 52.8% of households are food secure, 23.3% mildly food insecure, 14.3% moderately food insecure, and 9.6% are severely food insecure. These findings are very important to assist policymakers to achieve Vision 2020 and the targets of Malaysian National Plans regarding food security, socioeconomic development, and the alleviation of poverty. The involvement of private sector and community-based organizations are important to combat short run, seasonal, and event-related risks, as well as for the development of appropriate mitigation and adaptation options to ensure sustainable food security at household level in Malaysia.

This study attempts to see whether the Feldstein-Horioka (F-H) puzzle holds when countryspecific effects are taken into account in a panel of 20 developing countries. We employ four estimation procedures, pooled, between, within (fixed effect) and random effect (RE) models. The results indicate that the puzzle does not go away even when country-specific effects are accounted for. In order to check robustness of results, estimates are also obtained from two sub-samples which produce qualitatively similar results. Overall findings contrast the results documented in Corbin (2001) and suggest that another puzzle (low correlation between savings and investment in developing countries) still remains even when country-specific effects are accounted for.

This paper examines the impact of inflation on financial development in case of Bangladesh for the period of 1985-2005. In doing so, ARDL bounds testing approach and Error Correction Method (ECM) have been employed. Empirical findings reveal that high trends of inflation impede the performance of financial markets. GDP per capita promotes development of financial sector through its causal channels.

PurposeThis paper aims to use the newly developed panel data cointegration analysis and the dynamic time series modeling approach to examine the linkages between financial structure (market‐based vs bank‐based) and economic growth in African economies.Design/methodology/approachThe research investigates the dynamic relationship between financial structure and economic growth in a panel of a group of seven African developing countries over the period of 1986‐2007. The paper uses various indicators/measures of financial structure and financial system, and employs the traditional time‐series analysis for causality as well as the newly developed panel unit root and cointegration techniques and estimated finance‐growth relationship using FMOLS for heterogeneous panel.FindingsFrom the dynamic heterogeneous panel approach, the paper firstly finds that market‐based financial system is important for explaining output growth through enhancing efficiency and productivity. Second, the authors' empirical evidence supports the view that higher levels of banking system development are positively associated with capital accumulation growth and lead to faster rates of economic growth.Originality/valuePanel cointegration, group mean panel FMOLS and country‐by‐country time series investigations indicate that the market‐based financial system is important for explaining output growth through enhancing efficiency and productivity, whereas the development of banking system is significantly associated with capital accumulation growth. Further results from the time‐series approach show evidence of unidirectional causality running from market‐oriented as well as bank‐oriented financial systems to economic growth.

This study explores the savings–investment relationship in the context of financial liberalization and flexible exchange rate regime in Pakistan. Ng–Perron test is employed to examine the order of integration of the variables used in the model. For long-run analysis, ARDL bounds testing approach is used and short-run dynamics are captured from error correction model (ECM). Time series data are utilized covering the period 1976–2006. Empirical findings indicate that in the case of Pakistan, there is a weak correlation between savings and investment. The study suggests that in the presence of inadequate capital mobility within the country, domestic investors have financed investment projects from international market. Furthermore, devaluation and inflation have stimulated investment activities in the country and significantly contributed in closing the gap between domestic savings and investment.

This paper tests the relationship between financial development and GDP volatility using Chinese data for the period 1977–2006. Our findings in this study suggest that a higher financial development reduces the volatility of real per capita GDP. The Autoregressive Distributed Lag (ARDL) technique to cointegration is employed to establish the existence of a long run relationship between financial developments and standard deviation of GDP – a measure of GDP volatility. In addition, this research draws some policy implications for further development of the financial sectors for economic stability and sustainable growth in China.

This paper is an extension of the Baland and Robinson theory of child labor efficiency which studies the problem of child labor using a two period model with a general equilibrium approach. To the original theory, we seek to incorporate a non-negative cost of education and an indicator for school quality. Our findings suggest that an increase in costs of education invariably raises the level of child labor. Furthermore, when school quality is poor, improvement in it can decrease the equilibrium level of child labor. In the welfare analysis we find that the conditions for education subsidies to be welfare-increasing suffice for a ban on child labor to be Pareto improving.

This paper attempts to examine the link between nominal devaluation and real devaluation with special reference to the Philippines. In doing so, we have used log linear relationship between the variables and have employed some sophisticated tests such as Ng–Perron unit root test, autoregressive distributive lag model, and dynamic ordinary least squares test for the long run correlation. The findings of the study with the Philippino quarterly data suggest that not only in the long run, but also in the short run, nominal devaluation leads to real devaluation.

(2000). The Grameen bank of Bangladesh: History procedures, effects and challenges. Asian Affairs: Vol. 31, No. 2, pp. 160-169.

Grameen Bank of Bangladesh formally began operating as a specialized credit institution in 1983, although its history can be traced back to an innovative pilot project that began in 1976. The bank gives small-business loans to the poorest of the rural poor on a group liability basis instead of requiring any collateral. Because they have no collateral, the Grameen Bank borrowers do not have access to conventional sources of credit. The loan and the accrued interest are repayable in small weekly installments over a period of one year. The bank also provides comprehensive investment advice to its clients and helps them generate savings for themselves. Peer pressure works as a driving force for the borrowers to repay the loan on time. In case of default, the borrowers as well as other members of the group become ineligible for further loans. The loan-collection rate of the Grameen Bank is nearly 98 percent, a rate that is far higher than that for any other conven

During the 1970s the Indonesian economy grew at a rapid rate. This growth was primarily attributable to the government’s oil revenue and massive expansion of public sector in Indonesia. However, the decline in oil price of the 1980s adversely affected the growth and stability of the economy. The government clearly recognized the fact that a restructuring of the economy was imperative. The present paper is a critical analysis of this restructuring effort. The paper argues that the restructuring was initiated with a view to enabling the private sector and non-oil exports to play a greater role in the expansion of employment and income. The reform program began in 1983 with political and economic agenda. The political agenda includes the issues of Pribumism and ethnic diversity and economic nationalism while the economic agenda addressed the privatization initiative, fiscal/monetary policies and trade/investment policies. The reform process that was initiated by the government was partially successful. This paper argues that the main reason for the reform not being fully successful is the corruption of the bureaucracy and too much political orientation of the policies.

The discovery of oil in 1929 has been a major political and economic event in the modern history of Brunei Darussalam. After the great oil crunch of the 1973-74 and the subsequent increase in the oil price, the society and economy of Brunei stepped into the threshold of a transformation process. This paper is an attempt to examine and analyze this transformation process. It argues that in the midst of the transition, the prime policy goal of the government of Brunei is to diversify the economy and reduce its absolute dependence on oil and gas. In order to do that, Brunei must be able to encourage the growth and development of the domestic industries without significantly distorting the market mechanism. At the same time, it should be able to attract direct foreign investment in Brunei through the appropriate incentives.

It is now widely recognised that entrepreneurship is not necessarily an individual-centric response to profitable opportunities or synonymous with business start-ups. Corporations or established firms, too, can play an entrepreneurial role. Merger is one means through which two ormore firms can augment their business power, add to their product lines, expand their market reach and achieve various economies of scale. This paper critically reviews the existing literature on the effects of industrial merger and concludes that they are not easy to measure precisely.

This paper investigates the relationship between money, prices, output, and the exchange rate in Bangladesh during the 1974–92 period. Several interesting conclusions can be derived from the paper. First, the inflationary process in Bangladesh cannot be explained exclusively by the monetarist or the structuralist explanation of inflation. Second, regardless of the monetary aggregate employed, monetary policy exerts a significant unidirectional impact on real output. Third, monetary policy and inflation together account for a significant portion of fluctuations in the exchange rate. Finally, it is noted that monetary shocks have a strong, but relatively short-run, impact on inflation. In light of these findings, it can be concluded that monetary policy in Bangladesh should be carried out with extreme caution. While tight money may put a short-term halt to inflation and help stabilize the foreign trade sector, it may also cause a slowdown in the economy.

This paper examines the impact of inflation on financial development in case of Bangladesh for the period of 1985-2005. In doing so, ARDL bounds testing approach and Error Correction Method (ECM) have been employed. Empirical findings reveal that high trends of inflation impede the performance of financial markets. GDP per capita promotes development of financial sector through its causal channels.

Bangladesh has been subject to balance of payments difficulties since its inception. The government first tried to improve this situation with traditional monetary measures but experienced disappointing results. Among other reasons, this failure can be attributed to the fact that the balance of payments problems in Bangladesh are, in general, the consequence of rigidities of demand and supply in various factor and product markets. In line with this assessment, the World Bank and the International Monetary Fund persuaded Bangladesh to embark upon a medium- term, comprehensive Structural Adjustment Facility plan in the mid-1980s. This paper is a critical evaluation of this plan and Bangladesh's recent macroeconomic experiences.

(1992). The grameen bank and the changing patron-client relationship in Bangladesh. Journal of Contemporary Asia: Vol. 22, No. 3, pp. 303-321.

In macroeconomics, consumption functions supposedly demonstrate stable relationships between consumption and disposable income. This letter constructs a simple consumption function of Keynesian type. It also estimates the function and tests if any structural change had taken place in this function in 1974 following the beginning of the stagflationary era caused by the great oil-crunch of the early 1970s. The estimation and testing follow standard statistical procedures and use annual time series data for Canada (1947–78). The findings suggest that the Keynesian function for Canada had not undergone any significant structural change in 1974. The function was found quite stable in terms of intercept as well as slope parameters.

There are many theories in the field of international economics that explain the balance of payments disequilibria and movements of international reserves in one way or another. One of them is known as the monetary approach to the balance of payments. Researchers have been increasingly using this theory to understand and explain the balance of payments fluctuations. The present paper employs the monetary model of balance of payments in its attempt to explain the relationship among monetary policy, domestic credit policy, and flow of international reserves in the context of balance of payments for a small open economy, such as Bangladesh. As such, the specific objective of this paper is threefold. First, it explores the determinants of money demand and money supply functions to predict, in general, the impact of domestic credit policy and monetary policy on the balance of payments. Second, it explains the current account, particularly the flow of international reserves and its repercussion on balance of payments. Finally, it tests the validity and prediction of the monetary theory of balance of payments using quarterly data pertaining to Bangladesh.

(1985). Impact of agricultural modernisation on rural labour market of Bangladesh. Journal of Contemporary Asia: Vol. 15, No. 1, pp. 64-78.